convicting martin shkreli just because he's martin shkreli, so that was our greatest fear when we were picking a jury, so we got reasonably fair people whether their verdict is 100% accurate or not, i think we need to review the transcript, review the verdict and on balance i say, again, you know, count seven was the heart of this case from the beginning it was a claim that martin robbed money from his own company to pay back people, and that theory was soundly rejected >> >> inaudible question ] >> we're not going to discuss that. >> there were never any substantive negotiations >> martin, do you think your reputation -- >> let me answer that, okay. martin has some work cut out for him in terms of trying to undo the damage which i think he was

unfairly given when the whole story would come out with respect to daraprim and the reasons for the rise in price. nobody who needed the drug was never deprived because they couldn't pay for it. second, there is an image issue that martin and i are going to be discussing in the next several days martin is a brilliant moung man, but sometimes people skills don't translate well so we will have some good discussions, but at the end of the day, you know, martin i think has more than held his own in this case, and despite the issues that travel with martin, i think we're standing here smiling even though it wasn't a clean sweep that we would have preferred. >> martin, no questions from cnbc, sorry. next question.

>> are you ready to go >> i don't want to answer that question that way. i'm going to do everything i can to convince the jail that a jail sentence is not appropriate. if after sentencing a jail sentence is imposed, there is still an appeal that would be brought here, and i think some of these counts are hanging by a thread, so my hope is that the end of the appellate process, there is no prison time for martin. >> i'll add very briefly to that, that when you have the entire federal government, including parts of congress, as you may have noticed, mr. braffman accompanied me to congress even, it's a scary feeling. it's a daunting thing to meal the weight of the government on your shoulders, and i think there's maybe only one man who can make that burden a little bit easier, and, you know, i don't think there's anything that pales in comparison to the pressure of feeling the entire government sort of trying to squeeze you and standing up to them and telling them, you know, we don't think you have your facts right and i think today proved, again, notwithstanding their entire -- all the

resources of the federal government, we fought back and feel like we love. >> what are you going to do next >> martin is going to continue to find and develop drugs for the treatment of rare diseases, and i think to be honest with you, if at the end of this martin is spared a prison sentence, i think one day usual reading about martin having developed a cure for some of the illnesses that to this day are taking especially young children, and martin will devote his genius and at all tonight those efforts. i think it will be much better for america and the world than if martin were to be sent to prison. >> are you pleased about the fact that some of these were straight and won't be reversed on appeal? >> this is a unique case i've been doing this for almost 40 years i don't remember any case exactly like this, and i say, again, to overcome the prejudice

that we faced coming into this case is a testament to a fair judge who tried very hard, an honest jury who i think tried very hard, advocacy which is very important in a free country, and i also want to say something to the media at large who y'all have most been my friends for many years we've grown up to go i did not read a single article in this case about our trial that did not include a reference to the controversy surrounding daraprim even though every article said that had nothing to do with this case, so to the extent that there is a need to try and inform the public, i hope tomorrow's reports inform the public that martin shkreli went to trial and despite being martin shkreli he won more than he lost, okay? thank you very much, ladies and gentlemen. >> thank you >> thank you >> all right

martin shkreli and his attorney effectively claiming victory in this case despite being convicted and found guilty on three of the eight counts, highlighting that five counts, especially count number seven, they were found not guilty or scott wapner and kelly evans i know you'll have much more in-depth coverage on this as well, but from a legal perspective, from my perspective, hard not to classify this as a slight win for the shkreli team >> i mean, if you look at it the this way, brian, although they -- ben braffman, the attorney for martin shkreli, seems clear to understand that this verdict, these three guilty counts could include some jail time for his client. he has said that he's hoping for a lenient sentence pointing out that the judge has enormously wide discretion in that decision, but you're right they are trying to claim victory, and the words that they used afterwards. shkreli himself said he was, quote, delighted ben braffman called the verdict

a good result, a reasonably good verdict under the circumstances, as martin shkreli, who is walking there now came out of the courtroom with a smile on his face, came out of the courthouse and he's walking down the street very much as if he won, but he faces an uncertain road ahead on whatever this judge decides to do. >> praising the judge, scott, was a smart move by braffman because as you noted he's got some wide -- i guess he's got some latitude in what he decides to do, because conspiracy to commit securities fraud can either come with just a fine or it can come with five years in jail per count found guilty, so he was found guilty on two counts, so theoretically you could have ten years in jail plus a fine, or the judge could level a fine braffman coming out and praising the judge which is maybe not the worst idea in this case given the fact that shkreli, his notoriety is so well known. >> we want to check back at the

podium we understand the government lawyers are there to make their own statement and this, of course, after martin shkreli's attorney and martin shkreli made theirs, so let's try and listen in not quite yet. you know what was so amazing, kelly and scott, was how they managed to sort of manage the narrativeterm i'm delighted by this verdict when asked about whether or not shkreli had a preference for prisons, they said next question they even said no questions from cnbc, specifically the government lawyers are starting to speak so let's listen in. >> a short time ago the jury deciding the martin shkreli case returned its verdict of guilty of securities fraud involving ms, mb capital, guilty of security thwart and conspiracy to commit securities fraud with regard to retrophin. we've been gratified throughout the trial at the close attention

the jury paid to the evidence, and we're gratified as we stand here today at the jury's verdict. justice has been served. this case was a team effort by my office, the prosecutors from our business and securities fraud section and the fbi. in particular i have to thank jacqueline kasulis, the chief of our business and securities fraud unit she led this case with chase, intelligence and skill, and i also thank the prosecutors on the team, alex smith and, of course, i thank our paralegals who ably supported this effort i also want to extend special thanks to the fbi agents who worked on this case. christopher dell zoto, michael raconi, sean sweeney and nat mahaffy. the work of our office and the

fbi on this and in many other cases demonstrates our resolve to protect the investing public and our markets from fraud and abuse. rest assured, we will continue to investigate and prosecute those who engage in schemes to defraud such as this one now, i'm not going to comment further at this time because our work is not done mr. shkreli remains to be sentenced, and there's a co-defendant to be tried in this case, so at this time i'm simply going to thank you for your attention and end with the one statement that's most important and that's the jury statement, guilty of those counts that i said, securities fraud, securities fraud and conspiracy to commit securities fraud thank you. >> thank you, everybody. >> and that's the government attorney replying there by saying she believes justice has been served with these two counts of guilty out of eight for martin shkreli

she also said our work is not yet done, and it does sound like both sides have addressed the issue of appealing this further. by the way, just to go back to that, we heard from benjamin braffman, the attorney for martin shkreli, that he thinks some counts where they did get the conviction were quote, unquote, hanging by a thread. he's not sure whether shkreli will see any prison time. >> he mention the the post-trial motions that they will now civil through and see what sort of recourse they have, if any, on that angle, but how interesting it is that both parties in this case come out of the courthouse and claim victory. shkreli delighted. braffman a good result and the government coming out, not even focusing on anything other than the three guilty counts and the case itself saying that justice, as you said, kelly, has been served. >> again i think the tricky thing here is that there's a number of different types of, you know, issues that were involved, so by

the way on the main issue which he has been convicted on securities fraud, that still does carry kwai potentially a lengthy prison sentence of up to 20 years that's why you can see a lengt of outcomes, it could still be from him serving no time to serveving quite a lot of it. >> meg tirrell has been covering this case from the beginning and is outside the courthouse in brooklyn meg? >> reporter: hi, guys. well, of course, as you know, three guilty counts of eight shkreli and his attorney just coming out and giving a statement basically claiming victory as has been pointed out here, even though there are three guilty counts, the government just giving a statement saying this case and this verdict demonstrate their resolve to protect the investing markets from fraud and abuse here, guilty getting the guilty count on three of five shkreli's attorney really emphasizing that count seven was the one that they really cared about and they got a not guilty verdict on that one, that was conspiracy to commit wire fraud

as it relates to his old biotech company retrophin. braffman saying that one could hold the strongest penalty and he was found guilty on count eight, conspiracy to commit securities fraud as it applies to his old biotech company retrophin. as kelly was just pointing out it really could range, his attorney saying no prison time at all or others at the peak end up to 20 years we'll just have to wait and see. they were asked some questions about the press about prisons, potential prisons. they even refused to entertain that idea. shkreli referring this to a witch-hunt of epic proportions, saying they found a few broomsticks but overall claiming victory. kelly and scott. >> the do we know when a formal sentencing hearing will take place, when we would hear from the judge next >> reporter: i don't know that we have a date when we'll hear

from the judge next. typically i -- i've heard that this could take maybe a couple of months. >> a couple of months. meg, in the meantime, we already heard martin shkreli pretty vociferous or braffman said no questions from cnbc. >> that was shkreli. >> never shy of sharing his views, meg what is he allowed to do as this moves into the sentencing and appeals phase? i mean, is it open season? >> reporter: as far as i know, the one rule on him was that he wasn't allowed to discuss the particulars of the case in and around the courthouse. he was, of course, tweeting from inside the courthouse as has been reported anyway, so as far as we know there are no real restrictions on mr. shkreli as it applies to talking about the case we did try to ask, as you pointed out, when they said no questions from cnbc, whether he planned to continue to work in the pharmaceutical industry. he refused to answer my question but his attorney then said he expects that if mr. shkreli is allowed to stay free and not be in prison he could contribute to

developing drugs for rare childhood diseases guys. >> oh, yeah. we can see him building the case already for letting him be a free man instead of serving behind bars. meg, for now, thank you. meg tirrell is in front of the courthouse where this all happened joining us now is a partner at danfor and shore thanks for joining us. what's your early read on what all is happening here? we'll try him in just one moment. >> i'm curious to get his sort of point of view on who he thinks has the right to come out of that courthouse today and claim a victory, whether it's martin shkreli and benjamin braffman, his attorney or, in fact, the government lawyers. >> let's see if ira can hear us now. are you with us? >> yes, how are you? >> we're wonderful and scott's question here who here can claim victory? is it the defense or prosecution? >> i think both sides are going

to claim victory obviously the defendant was found guilty of some of the counts and not guilty on all of the counts so the defense can claim there was some success, but at the end of the day, any day in which you are convicted of three federal felonies and have an exposure up to 20 years is probably going to go down as a bad day. >> what's likely, do you think, in terms of sentencing, if there is jail time or not? braffman says he hopes for a lenient sentence saying the judge has enormously wide discretion in that area. what's your view >> well, he's correct that the judge has great discretion here. what's going to happen next is that the probation department, which is an arm of the court, will prepare a document called the pre-sentence report which will analyze what conduct the defendant was convicted of what the aggregating and mitigating circumstances are

what the recommended range is under a document called the federal sentencing guidelines. there's a grid which on one axis lays out the seriousness of the offenses that the defendant was convicted of which here were fairly serious, and on other axis lays out defendant's criminal history which to the best of my knowledge he does not have any prior convictions, and there will be a recommended range, and the judge can sentence within that i haven't done the math, but the judge can sentence within that range and can go very downward if she finds reason, can vari upward if she finds reason to the maximum which i believe is 20 years >> if -- if you were braffman, would you say -- that's shkreli's attorney obviously, would you be worried that sort of his persona, his his attitude, his repeated snark and disobeying of what some of the judge said not to do would factor into any of the decision-making process?

>> i wouldn't think it's going to drive the decision-making process. i think the decision-making process of the judge who is the ultimate decision-maker here, and i'm assuming, by the way, that there will be a motion by the defense to set aside the verdict on the grounds it a it's not consistent with the evidence and so forth assuming that that motion gets denied, and most of them are, though we don't know what the grounds are for this one, i think the judge is going to try to tune out some of the extraneous behavior surrounding the trial. i don't think she's going to take into account, you know, whether the defendant -- whether she considers the defendant to be a likable or unlikable person or, whether you know, she's happy, but, on the other hand, one of the things that she will be asking is if the defendant is, you know, given a relatively shorter rather than longer sentence, is he likely to, you know, live his life within the law, not commit any further crimes is it possible, she would say?

well, a defendant who is not fully complaint with court orders during an actual trial is a bad risk afterwards. it's possible that she says that, but i think much more -- much heavier factor in the sentence is going to be how serious the judge considers that the crimes he was convicted of based upon factors like what was the amount of loss to investors, both actual and potential. >> okay. the reason i ask the question, sir, lastly before we let you go, is that the judge imposed this gag order and mr. shkreli was said to be tweeting yesterday under a pseudonym so i wondered how that could factor into the overall picture where obviously the three counts will dominate but not necessarily play the only role. >> the judge has discretion. as i say, there used to be a very strict man try set of federal the guy lines. the supreme court did away with that and made them recommendations and the judge can vary up or down based on any reasonable factor she thinks is

appropriate. is it figure that someone who disobeyed a court order yesterday, if that happened, is not a good risk for a light sentence is possible, i'd be much more worried about the offenses of conviction. >> okay. ira, thanks so much for joining us. >> we also have breaking news on wells fargo this afternoon leslie picker with the details there. les? >> reporter: hey, scott, that's right. i'm watching shares of wells fargo down quite substantially today. the result of a 10q filed earlier this afternoon showing that we may not have seen the end of the sales practice crisis at wells fargo the company says a wider exam may find significantly more fake accounts they see possible legal costs beyond the reserves that they set aside for these legal costs which were $3.3 billion. they say those current reserves may not be enough. that number, of course, includes the issues related to the auto insurance sales to customers

that did not request that insurance. i want to read to you a full quote from the company they say it's also inherently difficult to estimate the amount of any loss, and there may be matters for which a loss is probable or reasonably possibly but not estimate ability according the losses may be in excess of the established accrual or the range of reasonably possible loss now the board said that they are engaging in a comprehensive review of the company's structure, composition and practices, and they say that actions will be announced as a result that have review in the third quarter. guys >> leslie, thank you leslie picker there. gerard cassidy joins us for a little bit more. as i understand it, this all came out in the 10q quarterly filing. >> correct, kelly. all the information was in the "q."

>> how much is required legalese and verbiage to make sure they are in compliance with these matters as they evolve, and how much of it from your point of view is giving us a direct look at the risks to the bank now as it heads into the third quarter? >> i think it's very transparent. under tim sloan, their current ceo, he's made it very clear to everyone that he wants to be as transparent as he they can be, and that's what you saw in in "q" as they gave further details about how they are expanding the investigation on the sales practices problems that they have, and they are going back further, and we should expect to see more people were affected by this problem >> is there any possibility that they need to raise capital in any way if the legal fees exceed what's in the reserves >> no, not at all. wells, just like everyone in banking system today, are so overcapitalized that we would not even -- that thought

wouldn't even enter our heads, and that language. kelly on your question that legal language that you heard described about the reserves every bank does that and wells has been doing it for some time like all the other banks that's not really new news in terms of the legal reserves, but, no, scott, they shouldn't even have to think about raising capital. >> they also said they my find significantly more fake accounts and the cfpb is thinking of freezing the accounts. what do you think about more actions coming in the future and is a decline of 2% a reasonable one >> i think it is a reasonable decline because there is more uncertainty, and i think what we're going to hear is that the company is going to put more controls and procedures in place to prevent this from happening in the future. they also describe, which the news was out about a week ago, about having some problems in their dealer auto paper with the insurance that they were selling, so this is not just,

you know, with this one specific area it has spread to other areas which is what the "q" describes and i think what we'll hear in the third quarter is how they did a comprehensive review here are the now policies and procedures, and that's why it's not going to happen in the future. >> gerard, thank you that's gerard cassidy, rbc wells, one of the other story is the jobs report this morning, much better than expected. the dow is up 43 point, dollar stronger, too. joining us for more is former commerce secretary carlos gutierrez along with former acting sect of labor, seth hey gentlemen, thanks so much for joining us and rolling with us as we move through all news. mr. gutierrez, let me ask you about the overall state of things, a macro backdrop that we're talking about. are you encouraged by what you see? >> i am. it was a solid report. as you know, 209,000 jobs was ahead of expectations, but it wasn't ahead by too much, so,

therefore, things aren't heating up it sort hit the sweet spot the key thing is that wages are up 2.5% on an annualized basis that's good news all waiting for that and the labor participation rate ticked up slightly. so the key challenge is we continue to be a 2% economy. 2% growth. the president wants 3 to about-3-.5%. that's going to be a big challenge which is why toys so puzzling that they are going to cut immigration by half. that works against growth and that will impact growth, but a very good report challenges is the gdp growth. >> secretary harris, how would you say it >> well, i agree in part with secretary gutierrez. the jocks numbers were quite good had 82 consecutive months of jobs growth. that's a terrific record for our country. the unemployment rail ticking down again, but on the wages side, it's a much, much more

troubling picture. if you account for inflation, workers over the past year have gotten less than a 1% pay increase that's about 25 cents an hour for the average worker that's not enough for workers not only to catch up with the lost raises of the past but to contribute in the growth of the commit we immediate more consumer spending and money in the workers' pocket in order to drive more money into the economy. >> the thing is 2.5% is better than what we've had so we're beginning to see signs of life that wages are increasing. >> gentlemen, appreciate it. mr. secretary, to you both, carlos gutierrez and seth harris joining us today as i mentioned, 35 minutes dow hang on to a 44-point gain as we digest all of of this that's percolating, scott. the wage number, the jocks number, the immigration movements and the news we've had just this afternoon. >> some are questioning whether we have enough workers to keep

these jobs numbers as strong as they are the ceo of aetna telling us yesterday health care is a really easy fix, but coming up the interim ceo tells us whether he thinks he can get their act together and replace obamacare

of adp this afternoon. there it is right there. virtually flat, $111 a share, after bill ackman of pershing square revealed a new stake in

that company of 8% i spoke with bill earlier today in an exclusive conversation in which he told me as recently this morning he was still buying shares of adp and plans to file a 13d, activist filing on monday he says he's not seeking control of that company as has been previously thought says he plans to propose a minority slate of directors which is interesting because originally it was thought and reported that he was looking for five seats and control of the company. he says he's looking for four or fewer. he did ask for a one-week extension to the nomination deadline which was next thursday to be able to meet with the board pand give them time to consider some of the ideas that he has his goal, he says, was to do this consensually. he didn't want to have a proxy fight. he wanted to work with the board like he did in prior cases of air products and chipotle and he's very bullish on adp saying margins can expand by more than

50% and growth can accelerate and the company needs a transformational change. those were his words he said, quote, we think it's a great company that has underachieved its potential like canadian pacific and air products he said we're not proposing a spin of the assets not proposing the company leverage its balance sheet or change its credit rating not looking for the way the company invests in its clients funds. we were willing to work with carlos rodriguez he is the ceo and someone outside that company bill said he did six months of research and spoke to 880 former executives and pershing square plans to do a public investor presentation sometime in the near future to lay out entire case as to why they invested in the this stock and where they think that it can go. >> and the two of them went to college and business school together. >> went to harvard, undergrad and business school. >> lots offageles. >> clearly know each other and bill made of making that. >> joining us with two different

perspectives is ken squire, founder of 13d monitor and cnbc couldn't jewettor jeff seinfeld. ken, you're pointing to canadian pacific and air products saying maybe bill ackman can bring positive change to bear on this company, right >> that is true. very similar to what he did at canadian pacific he sees a company massively underperforming its potential. when he got involved in canadian pacific it was trading at an all-time high and came in and doubled the margins there and got another 150% return from that company similarly here, he sees where he can almost double margins and hope to go for the same type of return bill ackman doesn't look at where the company has been he looks at where the company is now and where he thinks it can be on the future based on its potential >> you know, jeff, you've been critical of activist investors and you've been critical of

ackman himself over the years. i'm wondering what you think about this particular case in a company that frankly over 5, 10 or 20 years from a stock standpoint has done quite well not only has it beaten paychecks, its direct competitive, but the s&p 500. >> you're absolutely right, and just since this ceo has been there, since -- since carlos has been in charge, the stock has been up well over 200% the s&p index over that period is 120% and where is bill ackman over the same years, 29% kevin can talk about picking a stock here or there. he's managing a portfolio. his portfolio has performed miserably as have the hedge fund managers i was watching midday and fresh off your call with bill ackman

is saying what in the world does this man want? three days ago he said he wanted to replace his classmate, the ceo, and by the way, just because it's his classmate, what difference does that make? we know anthony scaramucci and reince priebus were like brothers and richard anullo was a brother that they didn't mind firing all in the same business and all got fired >> you know that stock performance doesn't tell the entire story, and if he was to say, look, paychecks our competitor, our margins are better, we can do better why not strive to be truly great if we're just perceived to be pretty good. >> well, you know, you're right. stock price doesn't tell the whole story, and, in fact, their revenues are quite good, up 6%, the stock price up 2% and they have pretty good rosy forecasts.

they have beaten paychecks, but, you know, a long-term ceo of this company once explained to me, josh weston, that he thought the worst move of his career was missing the market that paychecks got, a very remunerative market. they have a board that tells them how to get into the space, have the head tech from mckenzie and not to mention superstars from merck rand elsewhere, they have tremendous financial space and tremendous board to help guide them into this space it's hard to understand who these five directors are that he would want to bring in that's any better than who is here. >> ken, as you -- >> let me respond. >> when you talk about air products, i can't help but think about his former partner paul hallel what other successes did he have >> thank you, kelly. let me respond i'm surprised to hear the professor looking at bill's

record versus the company record i've heard him on cnbc correctly laud long-term investing versus short-term track records and investing. if you look at bill ackman's long-term track ackman he's performed at 15% annuallized and in the 25 13d situations since inception, he's averaged 152% versus 17% for the s&p over the same time period so we can look at some small failures but his track record over time. >> some small failure. $4 billion in valiant and jc penney and herbalife he's got awhole pile of disasters. >> his track record is much more successes than failures and if we're to look at the activist track record and his returns versus the companies, i suppose mr. sonnenfelled thinks nelson peltz should get on the board of

procter & gamble immediately and ge immediately. >> 100% of institutional investors have reported they are disappointed with their performance in the activist fund they have been dramatically underperming the s&p. >> you talk to different institutional investors. >> i'm just telling you what the data says. fortune did a study in the last eight years as activist funds have underperformed five of the last eight years. >> you read a fortune study and i've spoken to the investors in these funds. bill ackman raised the co-investment fund for this investment. >> spotlight fund surveyed them all and 100% of institutional investors said they are disappointed i don't know who you're talking to. >> i'm talking directly to them. >> kelly. >> where has been last year? >> for two guys who are dressed very similarly you feel very differently about this topic >> you're not columbo. we'll bring you both back.

this is not the last time. ken squire and jeff sonnenfeld, appreciate it. have a great weekend. >> 25 minute to go before the bell closes on wall street a down of better than 38 points for the dow. another record-setting day for the dow. >> and investors worried about an eczema drug we'll be right back. n making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. see options data like never before. with thinkorswim only at td ameritrade.

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we're back shares of regeneron trading higher after a big earnings beat and raising its full-year guidance up 28% strong sales of its drug to treat macular degeneration. >> what's next in the pipeline for regeneron? joining us is the president and co-founder you're chief scientific officer and principaland developer of six fda-approved drugs let me ask you something out of left field we just heard that martin shkreli is a quote unquote genius and talent who need to be in the pharmaceutical industry to develop treatments. would you agree with that

characterization >> honestly i don't think about shkreli that much. i don't know him at all but i know we're really in a very different business we're not in the business of buying old drugs and then repricing them and trying to make a profit. as you were just saying, we're in the business of coming up with brand new discoveries and coming out with important new treatments for patients and being really innovative so all of our drugs are discovered by our people in our labs, and they are all, we think, representing important breakthroughs for patients. >> and by the way, we mentioned at least six of them already, macular degeneration drug that's done so well this year, but it's almost like we say with the ipo market, congratulations on your success and what have you got for us now >> the drug you mentioned is an amazing story because it actually gives back vision to patients suffering from the most common cause of blindness in the united states, and it's still growing in its sixth year because it's delivering such

important new benefit vision to patients but as you said, our people in our labs are constantly producing new things which is very hard in this business there's only 22 new drugs in the entire industry approved last year so far this year we only have two and one of them, i think you're referring to that, is duxint, for all sorts of diseases its first released in march was for a topical dermatitis, patients suffering from eczema, that's patients have 50% of their body covered with this oozy itchy rash, described like having poison ivy all the time and the results indicate that this drug gives majory will they have. >> hi, my name is george our stock is the third best performer in the s&p 500 over the last ten years

biotech stocks have had a great year thus far. does it continue, or do you feel like there's going to be rotation out of the space into some other areas that they need to perform better? >> by the way i only said that in response to kelly's question. >> you do know it was a bit of a joke. >> i don't pay attention to the sector we're not like really part of the sector we like to think we stand out and our results are dependant on our discostsry and the environment. >> and also the drug pricing >> and you feel like the stars are better align ford these stocks than the last 18 months just given the political rhetoric that was on the campaign trail to where we are now in the midst of a pretty good stock run. >> well, we do believe that there has to be responsible drug pricing. you may or may not know we've never raised a drug price for any of our drugs in our history, and we're considered i think one of the most responsible companies out there. why can we do that in why don't

we have to rely on the prices? because we're innovative we can grow by bringing new medications to patients. when we perform well, that's when we're producing important new drugs that can really make a difference in patient's lives. that's what it was about. >> you weren't bragging about your stock prices. you've got reason to. >> really appreciate you joining us today thank you so much. >> sure, thank you. 15 minutes to go into the close, and dow is hanging on to a 40-point gain. it's going to be enough for a record close there by the way, at least today unlike the last couple of sessions, small gains of two points for the nasdaq, russell up six. >> and there is a new kind of beat that wall street may soon be seeing. treating music like the bond business keonw going to tell you hoto ma mey there coming up on "closing bell.

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welcome back blue apron's stock is going from frying pan into the fire. >> that might have been --it's falling, blue apron is on news of a plant closure and some layoffs. aditi roy joins us with all the details. adity. >> hi there, kelly shares are down about 7%, and

it's stouchd new lows after news that the company might be cutting a quarter of its workforce. that's not the case. the company says they are closing a fulfillment center in jersey city and expects 470 out of 1,200 employees will not be transferring over to the new location however, that plant isn't expected to close until october, so that 470 number may change. the news comes less than a week before the company reports its first earnings since its ipo despite the stock plummeting since the company went public some analysts are still bullish on the stock pointing to the market potential of the meal kit industry back to you guys. >> aditi roy, thank you so much there. a little more than ten minutes to go before we close up the week dow jones holding on to a gain of more than 40 points i think we'll have another record close this is the eighth record close

for the dow. >> and the financials leading the way today, interestingly up next, it's time for the market acronym of the ekwe i see her over there, david darst with another great tie we'll be right back. [car tires screech] [bell rings] (upbeat dance music) (upbeat dance music) (bell ringing)

welcome back we are here.

it is time for david darst to join us with his market acronym of the week and another great tie, like i said welcome. >> thank you, kelly. nice to see you, scott. >> nice to see you, david. >> with all the drama that's been etch dent and in the world, drama might be a good one. "d" is the debt ceiling showdown 57 more days until they raise the debt limit, and if we don't we could have one of those august 5th, 2011 incidents when the market fell 8% the following monday, you'll remember that very well, scott. >> right. >> the "r" is record high for the dow and s&p. you guys just mentioned this eight in a row for the s&p, in it closes at a record today. >> that's right. >> you do not have the transportations confirming they are up only -- they are only up 2%. >> small caps have been kind of disappointing. >> 5%, exactly the russell 1000,

and the bank index is up about 4% until today's real which is a good thing the "a" is asia" is contributing the s&p, through last night's close, was up 10%. the dow up 12% the msci, china index, many people don't know this, this year to date up 36 has. >> huh. >> the msci. it's loaded with those big internet, chinese internet companies. >> much of the world, developed and emerging, has bested the s&p. >> totally, scott, up 25% for the msci. >> and in dollar terms they haven't gone anywhere because their currencies, and now you have the opposite factor going on. >> in many cases that's happened mexico has had a big rally in the stock market and in the currency after the trump pressure was relieved. the "m" is miniscule miniscule inflation and measly yields, so we have low inflation. we'll get next week the cpi and the ppi, and the final "a" is asset allocation is very

critical at a time like when when you have low volatility, new highs being set. you want to look at your whole portfolio. i sad next to the former chairman of general electric from 1981 to 2001, you know who that was he asked me could i put my investment philosophy on back of his business card, four things asset protection is paramount, second, correlations is critical you want assets that zig when others zag number three, reversion to the mean if japan grows to be half your portfolio, you've got to trim, and finally all assets are driven by a combination of fundamentals, which are okay valuations, they are expensive, and finally psychology, and -- and, scott -- >> fundamentals are better than hock, no >> i've met no one who is bearish on private equity and no one who is really bullish on equity, so i would say be careful of each of those respectively we still haven't had people come to the party

$4.7 trillion of corporate buybacks and 3.7 trillion of corporate mergers of american companies and negative 1 trillion individual selling. >> yeah. >> they have fought this the whole way up. >> i like the business card thing. >> maybe they don't ever show up, i don't know. >> that's a good one. >> david, thank you. have a lovely weekend. >> have a great weekend. >> scott, phenomenal to see you, long time. >> we're back with the closing countdown right after this. >> after the bell, we turn our attention despite the congressional recess, obamacare still being in the news with the president again pushing for repeal and insurance companies bailing on the exchanges we'llo al okt what could come next you're watching cnbc, first in business worldwide they're experts in things you haven't heard of - researchers of technologies that one day, you will. some call them the best of the best. some call them veterans. we call them our team.

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we're back for the closing countdown. looks like the dow jones industrial average is going to notch its eighth consecutive record close today its ninth consecutive day of gains. some of the stocks that have worked best today, the industrials are trading at a high -- sorry, the financials are trading at a high not seen since back in '07. the industrials are obviously doing very well considering what the dow is doing i'm here with bob pisani on the floor. this really has been a remarkable rub it's been a latter step run. we're not having these massive gains, but plus 58 almost, highs of the day, nearly on the dow is none too shabby. >> and certain -- last week it

was boeing that kept dragging the dow up. >> been boeing for a while. >> this week boeing is actually down, believe it or not. apple helping a lot. 3-m, home depot. and i will point out in the last six trading sessions the s&p is it up 240 points the dow is up 240 points and the s&p is actually down, so very unusual circumstances, so a few key stocks have really been pushing things around. people have been saying when are we going to get another move to the upside, s&p flat for three weeks now. we are seeing some new highs in the financials so you've got morgan stanley at a new high right now, goldman sachs at a new high and a lot of the big insurance names are sitting at 52-week highs and amex is at a 52-week high that's mattering and some of the industrials are doing very well. >> and had some consistency to it. >> industrials at new highs, deere and honeywell, all the

defense names, raytheon, so the answer is with the help is we'll see new leadership in the next couple of weeks to replace the semiconductors and the f.a.n.g. names that have been falling back a little bit in the last few days >> 22,081, as we're literally having the conversation. >> you, too. >> second hour of the bell now >> thank you, scott. welcome to "closing bell," everybody. i'm kelly evans. for yet another day the dow is finishing at a record high on wall street. today's high water mark is 22,084 with a 58-point gain. of course, we'll see how that all shakes out it continues its hot streak for those blue chips, and today everybody else participated, too. dow about a quarter percent and paced higher by the financials in particular. the s&p 500 up about four points to 2476 and the nasdaq composite adding a few to close at 6351 and the russell 2000, the lagard, adding half a percent to

close at 1312 versus 1450. a look at what's behind all these moves in a moment and martin shkreli found guilty on three of eight counts. we'll bring you the very latest details on what his future could look like coming up. bob pisani is here on the floor of the stock exchange to wrap up another week for the dow. >> another week for the dow where the dow has been a superstar far outperforming the other indices and select stocks are moving up. let me show you boeing was the big mover. it kept pushing the dow forward. boeing falling back this week and it has come to the fore and this is a great remarkable rotation week. apple up $6 in the last six days or so and 3-m up about $7, for the last five or six trading sessions home depot up about $4 and goldman up 7 some of the banks have been doing well put it together and a nice little move up in several different stocks and sectors at the same time we've had the

big market movers in the dow, this in the last few weeks have fallen back so boeing was the big mover last week. it's actually down for this week mcdonald's was a huge mover. it's actually down this week so is microsoft in the prior couple of weeks. it's also down this is what i keep going on, the rotation is what's going on. the close at the moment. the bizarre rally we've been seeing in the dow industrial the last six days. the white line there's the s&p 500. s&p is flat. it's actually down a point in the last six trading sessions. the dow jones industrial average is up 270 points because we get keeping this rotation into individual names i'd be remiss if we didn't point out some of the big momentum names have been weaker the f.a.n.g. stocks with the exception of apple are all down this week. those are the huge big momentum names that everybody keeps watching keep an eye on that. the other great momentum names, semiconductors that have powered the market forward, also down this week and nvidia is the lone

exception, so the big question, guys is, are we going to get movement from other sectors that are going to replace the big momentum names scott and i were talking about financials at new highs, american express, for example, at new highs, morgan stanley new highs. that's one group that's starting to matter. another one of the industrials saw honeywell, for example, new highs and all the defense names also there, and bottom line, we are getting that rotation and perhaps, perhaps we can deal with those momentum stocks a bit weaker now guys, have a good weekend. >> bob, you too. thank you so much, our bob pisani evan, do you like this kind of market where it's shaking out the f.a.n.g. names and financials are perking up? >> no, no, i don't i mean, my view a little bit is after a very good jobs report and a very, very good earnings season, if all we get is a little three-point bump in the s&p 500. >> you're not satisfied. >> my point is, you know, where is the upside going to come, from and bob just mentioned, well, maybe you get it from the financials

the bond yield curves are still very, very flat. the bond yield market is still saying very slow economic growth, you know you still have the ten-year at 2.25, 2.30 that's not a robust economy is firing on all cylinders. we've got wage growth. we've got, you know, a lot of upside basically the s&p 500 has not responded well over the last couple of weeks which says to me, you know, people are scared to actually be buying into this market with the valuation stretched as i think it is. >> as michael has been saying it's kind of running in place. next to me is evan newmark and larry glazer is here, managing partner and portfolio manager at may flower advisers on our steve liesman is here as well on that, steve, you know, just kind of pick up on the point evan was making. we got some evidence on how strong the economy is this morning. the jobs picture, at least, looked pretty good, but -- but, you know, i don't know whether to trust this atlanta fed number about whether we'll have over about% gdp

>> you know, we're looking around 2.5 on the cnbc wrap it up day which puts together a bunch of tracking numbers out there. i think the job numbers we've had are consistent with certainly 2.5% i would think that that would be quite good, so i think the underlying economy seems to be reasonably strong, and i'm kind of in the process, kelly, of changing my view of how many jobs we should be creating here. i know a lot of fed folks -- >> i know where you're going at some point maybe we're only adding in the 100s, if that, and it's a sign that we're strong, not weak. >> not only that, but, you know, all the fed folks said we should be creating just 100,000, should be equaling the growth in the labor forks but i'm thinking, you know, expecting this additional 100, expecting to be up near 200 might be something that we should be doing here because of the pool of available workers. maybe there is a possibility maybe some of the economists were wrong here. maybe there is a possibility to bring the people back into the

workforce. >> you say 200k is sustainable because of the people coming in. >> after the data comes in time after time and able to maintain this level, i thought we would ratchet down to the 100, 150 level but we haven't done it maybe it's time to change my opinion on how strong the job market can be. >> what's the charlie munger thing, any year in which you haven't changed your mind is a wasted year? >> i love that quote i love that alan greenspan came out today -- >> he's not changing his mind on that he's been saying that for years. >> so have i. >> how much money has he lost thinking that the bond market is overvalued. >> i tried to ask him but he wouldn't go into it. been a dow 22,000 week well all of this going on, what do you think is the next move for the markets? >> well, it's going to continue to drift higher, although i'm very, very concerned that the party is past its apex when you look at price to sales and price to ebitda which are very hard to mess around with,

unlike earnings, they are at 99 levels 1999 it's driven by a lot of momentum stocks that are wildly overvalued, and that, while the party is not over, i would tell everyone to start battening their hatches down because the likelihood is that -- >> do you feel better about this. >> but all the momentum stocks you're talking about tock a little paus -- took a little pause and we've got defense names and financials, and these are not parts of the market that seem like they are greatly overvalued and run being away here. >> what is the economy telling you? dollar at record lows. what is going up, everything that money that makes money overseas meg caps why the dow is doing well. interest rates are flattening, not the sign of a recovering economy. steve is saying 2.5% but none of the numbers reflect that you have to invest internationally because growth is happening in spain and

europe. >> can i argue with that. >> kelly, let me respond to that >> haven't gotten to larry yet. >> the hallmark of the rally seems -- since the post-financial crisis has been a rotation within the market and bob touched upon that. the rotation is really healthy that's what is keeps us going. rather than getting this market correction we get an interim dynamic that moves and one area that's been underappreciated that changes with today's jobs report is the idea that inflation is very much underappreciated in this market. the fed is back on reflation watch today, and i think investors should be back on that inflation watch and more importantly it's an inexpensive trade. hedge with energy or financials which are moving up today, so the risk/reward becomes very favorable because those are not the most expensive areas in the market today that's what's most critical, moving away into what's expensive and less expensive and has the potential to do better as market conditions change. >> i agree with that. >> joe, your dollar is popping a little, today, so you have a little bit of strength by the way, joe, why go

international for the growth exposure when you you're getting it in the s&p 500 to your point. >> you have to watch most people index invest in '99 that was not a great strategy after '99 so the portfolios of indexes, while i'm a huge fan of them, you need to think about how you tilt your portfolio. you definitely want to rebalance and be allocated appropriately and you also want to make sure that you're in the overinvested to growth stocks right now. >> all right steve what, were you going to say? >> i was going to argue with joe who doesn't see a 2.5 economy, got the consumer running at 3% and the government stoppeding its decline in spending which it had in the previous several years. i have the world economy growing better which helps the u.s., exports doing better and now i have this sort of nascent business investment rebound. i'm failing to see if anything well might be doing a little bit better than 2.5%, but i feel pretty good about 2. the market did well under 2 and people are getting jobs, 200,000 a month and getting slightly

more for the work of it, so i'm pretty good about the outlook and feel that 2.5 is a pretty good number. >> a couple of things that are important. the ten-year change in real personal income is at lows multi-generational lows, and until people make more money, it's very hard for the economy to do well i also just point -- >> that's just not true, joe that's just not true people will spend the percentage that they have, and if they get a little bit more every year, they will spend a little bit more of that every year. that's the way it works. >> i agree with that, but -- but the personal income -- what is happening right now is people are making more money because home values have gone out and they are borrowing more because of it. >> and there's a wealth effect too. >> would you agree if we had a 3% economy, the dollar should be doing a little better than it is >> you know, i think the dollar is a problem relative to what people think draghi is going to do, and i think the currency traders are a little wacky on this i love my currency traders, don't get me wrong, but they

have this notion of the ecb turning tail on quantitative easing, and it's going to be a lot longer before the ecb catches up with where the fed is than where the market is trading right now. >> the flattening yield curve. >> lining everybody up. >> evan, you go ahead. >> i was going to ask, i hate talking about the fed and i would have thought after ten years we were able to move on, but what today's jobs report brings me back to is what is the fed going to do. >> that's right. >> the fed funds -- nobody is pricing -- they are pricing in a very dovish fed, and i just wonder how you sit around the fed nearing 4% unemployment rate. >> the inflation number i. >> i understand that, the idea is that number is supposed to go up and wage gain is supposed to happen so at what point does the fed go, you know, what we're tired -- if we don't do it now, what are we waiting for?

>> the more important issue -- >> what is the european central bank do because the real growth story is not what happened in the u.s., low unemployment all along. the transition we've seen to the growth pickup in europe. the european central bank takes a much more lower look we have to see movement in the fed and they need to change their rhetoric the european central bank. spain is going to grow more than the u.s. this year and that's a whole different dynamic. >> project that out. >> that's why money is flowing overseas. >> project that out. give me a year from now the relative difference between the ecb and fed. i would say it's still this big, and it's going to get maybe marginally tighter i don't understand if you're a bear on the u.s. at the 93 on the diy. were you so bullish at 102. >> today was a knee-jerk reaction because you've had the dollar sliding basically for 15 months and the lowest volatility in 20 years. at the end of the day we're

seeing -- we're seeing a lot more growth overseas so investors have had enthusiasm providing less european stocks the u.s. multi-nationals have really benefitted from the weak dollar that could change based on today's data as you see the dollar had a big move in the dollar. >> larry, since we've got to go in a moment. larry, where do you think the right investments are right now? does that mean you're sticking with the u.s.? kind of comfortable with the sector rotation that we continue to see it? >> sglure. >> what's the follow on that rotation in. >> there's a lot of defensive areas left behind. anti-amazon trade. general mills which has been left behind, food stocks very defensive, high yield. a lot of special situations, talked about the reflation trade and the global economy looks a lot better a lot of opportunities have to be very valuation conscious where this market is today. >> evan, where would you be focused on >> at the record highs i'm overweight in europe relatively speaking. i'm overweight in energy relatively speaking, and at record highs i basically have

been selling s&p 500 reducing my exposure to the s&p 500. >> everyone is kind of singing the same tune on the show. >> and kelly, i'm focused -- >> i am worried. >> i'm focused on the traffic on the gw bridge trying to get home this afternoon. >> we'll let you get out of here. >> yes, ma'am. >> thanks for having. >> you're a good man for staying. steve liesman and larry glazer and joe duran. appreciate it. more bad news in the obamacare marketplace. molina's acting ceo joins us and martin shkreli was found guilty on three out of eight counts a couple hours ago we'll have the very latest next. and we want to hear from you. reach out to the show via facebook, twitter on send us an e-mail i'll read you some of the good ones, evan, but i don't even get osgbl@cu.cm. clinelnbniomyou're watching cnbn business worldwide

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welcome back martin shkreli has been found

guilty on three of eight counts including securities fraud which comes up to a 20-year possible sentence meg tirrell has the sentence meg? >> hey, kelly. well, this is a six week long trial including almost five full days of jury deliberations here before that the jury handed down three guilty charges of three charges among eight. found not guilty on five two of the charges were for securities fraud having to do with former hedge funds that shkreli ran, one conspiracy to commit securities fraud having to do with his former company retrophin. the government said he could face up to 20 years in prison. experts guess because this is his first conviction, he's not a prior offender, that it probably won't be that long his attorney was even suggesting after the -- they came out here today that perhaps they wouldn't face any prison time at all. we'll have to wait to hear from that though shkreli was found guilty on three of the eight counts was claiming victory coming out of

of the courthouse calling his attorney ben brafman his hero. take a listen. >> as to mark said, we've got some work to do. i think that the -- the jury has found and it's in if the record clearly that there were no losses at all with respect to counts three and six, which gratfies me personally this was a witch-hunt of epic proportions, and maybe they found one or two broomsticks, but at the end day, we've been acquitted of the most important charges in this case and i'm delighted to report that >> a ramp hunt of epic proportions, martin shkreli and his attorney ben brafman referring to some of the dredge disagainst mr. skrely in the one case count seven that he referred, to found not guilty, saying that's the most important one because that would potentially be the most severe and martin shkreli no stranger to social media. already apparently live streaming on youtube following this trial and making comments about what he expects to happen next, so martin shkreli is not going to be quiet at all, if

this is any indication, after getting this guilty verdict on three of the counts today. guys, back over to you. >> evan, we just saw him using a lint roller, drinking a beer and having a bernie sanders 2016 sticker which i don't know if it's ironic given bernie's position on drug prices. >> awfully confident for a man would was found guilty on three counts. >> he was all smiles all smiles today let's bring in sarah walters, a trial partner and is his use of social media a factor when it comes into the sentencing and what happens with this trial from here? >> absolutely. there's so many factors that go into sentencing, and i believe as both sides have discussed, there's -- there's a lot of discretion that lies with the trial judge here, and the trial judge will have to consider who this defendant is and the message he wants to send to the world at large about his -- his conduct, both inside and outside thecourtroom. >> on the flip side of that, sarah, his attorney basically

already tried to position for maybe the sentencing and appeals process when he called shkreli a genius and talent and said it would be better for so tight that he continue to practice in pharmaceuticals suggesting he would come up, you know, cures for childhood diseases as opposed to serving out his prison sentence. would something like that be taken seriously into account >> it's hard to say. i think it depends on the credibility of the argument frankly. the -- the courts do and are required to really consider who the person is and whether it -- whether the purposes of sentencing can be better accomplished by a lighter sentence and having them out and doing better in the world. it will be up to the judge and it will be interesting to see whether the judge truly believes that having shkreli in the pharmaceutical world is better than having him behind bars or with a significant sentence. >> yeah. >> but i think that that would be a hard one to make. >> just wanted to ask you as well about the distinction

between where he was found guilty and not guilty so on securities fraud three counts there and was found guilty and on some of the other matters including conspiracy to commit wire fraud he was not found guilty what would you say in terms of all the possible outcomes, this one is in terms of its severity. >> i think this is not to be wishy about it but a little bit middle of the road i think that the government should be pleaseded with this result as well as a practical matter, the sentence can be significant even based on these -- on the charges on which he was convicted, and, again this, judge is going to be considering a lot factors, not just the individual loss figure associated with the particular schemes he was convicted on. >> right. >> and they can consider the retrophin scheme as well possibly. >> thank you for joining us. appreciate us on short notice reacting to martin shkreli's jury verdict we should say today. more pain for obamacare.

molina health care bailing on two more state exchanges we'll talk to the acting ceo joseph white about the moves now and president trump once boasted about how many magazine covers he's been on but it's unlikely he'll be framing this week's "newsweek" calling him a lazy boy and questioning his administration's colimes. lot e president's record is coming up

welcome back molina health care down 4% after reporting an earnings loss this morning attributed in large part

to obamacare earlier this year the board, remember, fired the ceo. the interim ceo has announced layoffs, rate hikes and the departure from exchanges as part of a restructuring plan. joining us is molina health care cfo and interim president and ceo, joseph white. >> thanks for having me, kelly great to be here. >> is this the end of the road for you guys for obamacare >> i don't think it's the end of the road for us in terms of obamacare. we've chosen to exit two states which were financially very problematic for us we're continuing though to look at our participation in five other states where we have substantial participation, so we'll continue to lock at that over the next month before making final decisions >> so we know obviously when we talk about molina a lot of the times we're speaking about your medicaid business and medicaid turned out to be the sticking factor in the repeal and replace effort that recently failed in the senate in the five states that you're

still operating on the obamacare exchanges then, what do you think those rates are going to look like? are there going to be, you know, cost-sharing reimbursements coming from the government that you can count on are those factored in? >> well, what we've done for our remaining marketplace states is we're -- we're -- were filed for rates for rate increase of 25% and we've assumed in the rates that we won't be funded for csrs in 2018. if we were to be funding for csrs those increases would be 30% on average. >> a 55% increase. that's a hugenumber. is that the only way that this business is profitable for you, or are you still losing money on it >> we do need substantial profit increases -- i'm sorry, rate increases to be profitable, and we think 30% before allowing for the lack of csr funding is about right and would get us to more

acceptable profit margins for 2018. >> meantime, just pivoting back to the medicaid business, what's been your experience lately amid the huge expansion that we've seen >> medicaid managed care has worked out very well, both for the individual members who have served for the insurance companies that offer that coverage and for the federal and state governments who pay for it i think it's pretty clear that medicaid expansion as with the entire medicaid program has been a success all the way around. >> okay. and in light of all of this, i want to play a little bit of our interview with mark bertolini of aetna yesterday. they pulled out of all of the obamacare state. we asked him about the fate of the health care repeal and replace effort and whether he shared any thoughts on how to fix it here's what he said. >> they very clearly know my position we've offered our advice it's really easy to fix this if they would get over the politics of who is going to win the '18 election. >> is this all politics as far

as you're concerned, mr. white, or is there an option, a way out that you can foresee >> well, there is certainly an option, there is a way out there is a practice we've had in america for as long as it's been america. americans of both parties value the goal of affordable care, quality care for americans we just need to come together, negotiate, horse trade, give a little bit, take a little bit and we can reach a conclusion that's going to be very, very beneficial to the american people. >> all right we'll see if our next guest can solve precisely that thanks for joining us again. joseph white, the acting ceo of molina health care. as i mentioned, joining us now for more on the politics of health care is representative tom reed, a republican from new york he is co-chair of the new problem solvers caucus, a bipartisan group working to stabilize the aca insurance markets so the perfect setup for you. hanks for joining us today. >> thanks for having me on,

kelly. >> look, don't get us all feeling optimistic again that you guys are going to come up with a solution here because it hurts when it falls apart and then we're back to square one, you know, our toyed with is this -- is this for real? do you really think that you guys can come together and do that horse trading that the ceo was talking about and come up with some solutions? >> well, i think we have, and the problem solvers caucus, got 43 members, democrat and republicans essentially evenly split that said let's focus on the problem ahead of us and that's repeal and replace that didn't work. that's the collapsing individual marketplace. what i'm concerned about is the millions of americans that won't have access to health insurance, have premium increases of 55% as your last ceo indicated. that's not acceptable soap what we put together was a compromised solution, 80% that tries to stabilize the marketplace and then continue the conversation of how to lower health care across the country. >> here's some of your plan.

you would make the cost-sharing payments mandatory bringing his increasing down to just 35%. would you provide some relief to states for pre-existing conditions you would provide relief to businesses you would eliminate the medical device tafnlg device tax can you get new legislation through the house that would accomplish and send it to the senate and get health care done? >> we've taken the position in the housing but the critical piece is the senate, and we've been talking to the senate over the last couple of weeks on our position, and i was so pleased to see senator alexander on stabilizing the marketplace, and orrin hatch in the finance committee will have public hearings on that issue using our basis as maybe a cornerstone of trying to bridge and find that common ground. it's time to govern for the people and put the people first. >> so i understand that you're an upstater as we used to call it, central new york guy in. your experience talking with constituents about the failed process so far, what is the main thing that they want you to do for them

>> they want us to govern. i share the frustration of so many of the folks that we represent that say enough of of this partisan theater. enough of of this political theater. put people first, and that's why focusing on the stabilization of the individual marketplace was critical to bring us together because those are millions of americans that did nothing wrong to cause the heartburn that they are face and the heartache that they are facing with having the loss of their health insurance, so this is a solution. it doesn't solve the entire affordable care act but a solution we should start with and maybe incrementally take this issue on >> do you think you would have the president's support for this bipartisan effort? >> i hope so i was one of the first eight to endorse the president and confirm my endorsement of the president. i think he's doing what he can to move the ball forward but at the same time i hope he looks at what we're doing and movement in the senate in a positive way and embraces it. it's time for us to come together as a country. >> all right congressman tom reed, thanks for joining us. >> thanks, kelly >> and please keep us posted >> we will. evan, turning to you here.

we've heard on a potential new plan to kind of go back to the heart of the problem here. we've heard from molina on the ways that it's basically not able to deal with the unstable marketplaces we heard from aetna yesterday which has left it more or less entirely. >> if i would come up with one word that comes out of these discussions, and it's not -- it's not a new word. that's uncertainty, and if you're an individual with a policy through obamacare or the aca, if you are a ceo, that guy is the interim ceo, he's trying to run a company without any certainty over what the rules and regulations are going to be going forward, the subsidies, the structure. he knows nothing, and people -- >> businesses of all sizes are left trying to deal with what requirements are they going to have on the employer side even for providing health care. >> and when you have uncertainty, people get paralyzed and make bad decisions, and i think what you have right now is as close to a perfect storm for bad decision-making as possible, and

the one thing that mr. -- congressman reed did not talk about is really, and i don't want to put it on the republicans, but there is a will issue in the republican party. i'm sure they can get a number of democrats to go along with him with whatever they proposed did have bipartisan support but i'm not sure they can carry whole republican party and that's still going to be a sticking point for congressman reed going forward. >> that's a fair point. >> there are a lot of people in safe district. >> right. >> who are never going to vote for anything. >> doing nothing itself is a problem as well, so we'll see if 2.0, 3.0, whichever version we're on can get some tracks crop let's check in with sue herera for the news update at this hour. ohio senator rob portman stopping at a state fair in columbus his visit comes a little more than a week after a ride malfunctioned killing one person and injuring seven others. he talked with some of the fair-goers >> i have one question. >> yes, sir.

>> how cure is our health care >> we need to make to make it more secure. >> a russian court extendled the probation of opposition leader by one year, a sentence that should bar navalny to run for office he rose to prominence in his investigations of official corruption. french archaeologists have discovered what they are calling an extraordinary find. ruins that are so well preserved they are being compared to pompeii. in fact, the site in southern france is being called little pompeii. construction cruise stumbled on the ruins of the luxury homes, mosaics and furniture that dates all the way back to the first century a.d. that's the news update this hour. >> that's so cool. >> my favorite story of the day. >> they are not -- sue, they are not calling it little pompeii. they are calling it -- >> you can't even go with the french accent. >> le petit pompeii. >> something i'm going to order.

>> that's a good one that's a good one. >> sue, thank you very much. >> have a great weekend, guys. >> you, too. we have a market flash on united technologies to get to. courtney reagan, what's happening there? >> hi there, kelly let's take a look at two stocks, united technologies and rockwell collins. so there's a bloomberg report crossing right now moving these stocks that united technologies is weighing a deal for rockwell collins. you can see shares of rockwell collins up there 9.5% on this headline that's all we have right now is just the headline, but we brought it to you because you can see a very sharp move in after hours for rockwell collins. kelly, back over to you. >> that honeywell deal was spurned last year. >> board of directors becomes something they start thinking about. >> you want to start thinking again about whether you would rather be the actor there. rockwell collins popping 8%, 9% on that news

we will continue to follow the story. >> if congress is moving on from health care reform no one told the white house. president trump calling out congress to live up to the promise of repealing and replacing obamacare. larry kudlow is here and he'll join us with what's next on what's behind these taunts stay with us because we don't like surprises. yeah. like changing up the celebrity at the end to someone more handsome. and talented. really. and british. switch from cable to directv. get an all included package for $25 a month. and for a limited time, get a $100 reward card. call 1-800-directv.

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we're already getting started. another record for the dow up 66 to 22,092. close to another round level there. a third of a point gain and the financials did help lead the way after the stronger jobs report this morning the s&p up 4.5 and nasdaq up 11 and russell up aetna ceo mark bertolini was here yesterday with his take on obamacare. >> the aca cannot be repealeded. they do not have the votes in the senate where they need 60 in order to repeal the aca. what we should do is fix it and unless we can get a bipartisan solution to do that, we won't fix it right >> president trump addressing the issue as well at his rally in west virginia last night. >> i will repeat again tonight that congress must do its job.

keep its promise, live up to its word and repeal and replace obamacare. you have to do it. >> and we just heard from congressman tom reed who is trying to do that now with a bipartisan group of representatives. joining us now to react to all of this is larry kudlow, senior cnbc contributor so you must be thrilled about this new effort that health care reform maybe lives once again. >> the president was goading that's what he's doing, taunting is it that the word you use, i love that word, and he should, that's good, because the congress should have gotten it done and the senate should have passed the reform package which was pretty darn good now you've got the insurance heads coming on, oh, woe is me they have a $40 billion bailout which is being orchestrated by senator lamar alexander, and there is bipartisan support, democrats would love to bail the insurance lobe, one of the most powerful in washington. >> let me stop you for a second. >> why is it a bailout of the insurance companies to subsidize

them for a terrible system that is not profitable for them but that exists? it's not a bailout of the insurance company, correct, a decision about whether you're ultimately going to try to keep this thing going while you make had a bigger effort to repeal and replace it we just had molina tell us they are going to charge 455% higher premiums. >> i hear. >> is that bailing out insurance companies or a realistic assessment of what needs to be done >> look, look, these guys -- i don't know about molina, but the insurance lobby was very forcefully in favor of obamacare. >> and they did well for a couple years, that they were going to get risk corridors and re this and re that, all just subsidies this is so simple. the reason behind this problem, the costs, cost-sharing, i love that, is the mandatory benefits. first of all, the one size fits all benefit. >> if you agree it's a bad deal,

then it is. >> the essential benefits should be abolished. >> then this whole issue goes away. >> goes away you can't keep the benefits or you can't keep obamacare in place and keep doling out. it's 40 billion, will go to 50 billion, 60 billion. oba, by the way, paid with that without even appropriations. >> yes, we'll keep the cost sharing payments going, call it a bailout if you want but it's part of a plan at least to advance this once again. are you willing to take that in stride >> i want the senate -- the senate should do its duty, the republicans in the senate were elected to repeal and replace, and they betrayed the voters, and i hope some of them lose, okay that's what i think about this h.get rid of this thing. the president himself, look, i took to him two weeks ago for quite a while. he can't wait to do tax cuts the whole white house is mobilized, meeting with the senate and the house they have a god timetable, gary cohn and steve mnuchin, et cetera i spoke to orrin hatch yesterday.

they are ready to rock and roll on tax cuts. you had a great plan. >> you had a term, you called this the general kelly stock market rally this week. >> well, i -- >> do you really believe that? >> sometimes things turn out for the best. >> by the way, larry is the king -- for your viewers out there. larry is king of the glass half full when it comes to the trump administration going back a few months, larry was -- he thought -- you would have thought we were 3%, 4% growth by the end of this year and it's not happening all i'm saying is you've tended to view things. >> yes. >> through -- let's call it more favorable light. >> yes. >> contrary to what people would say is some of the facts on the ground. >> i don't know about that. >> there's been some pretty nasty facts on the ground in washington for last couple of weeks or months. >> the stock market -- >> the political stuff, the juries and all that, i don't know anything about that, to tell you the true. i believe there's still a very favorable chance that the tax cuts, particularly the business,

but maybe some individual tax cuts will go through that's my point about health care the president is nagging and goading the congress they should have done their job, but he is ready to go to tax cuts he's thinking about an oval office speech. he's thinking about a number of rallies around the country because these are tax cuts that will help wage earn issers and middle income people, among others. >> and you had a little interesting nugget about the wage number, too, which maybe fits into this idea that if he can right some of the rest of the things that are going wrong, there may be a groundswell of support for what's happening in the economy, for what's happening in the stock market. what the was your wage proxy this morning >> yeah, it's interesting. people say wages are only 2.5%, that's average hourly earnings in order to get a proxy for i'll call it wage earner income, objection you have to multiply wages times hours worked. >> yeah, sort of total labor. >> on a 12-month chain which is how you look at things, it's actually 4.5%.

>> wow. >> that is a good number. >> that's a good number. >> and furthermore, the inflation rate is only 1.5% pced, 3% increase in real income that's your wage earners. >> have you sat down with janet yellen and the fed and you had that discussion, would they agree with your 3% number? >> sure. that's pretty standard economic stuff. a lot of people just want to look at one line i'm just saying you've got to look at the big picture. the other point that's working -- >> don't you think by that metric his approval rating should be 50%, labor income up 4.5% and a record high stock market and he's like 35 or something. >> yeah, among some polls, i agree, among his base he's much higher than that in the economy alone, he's about break even, but, yeah, look, if the prosperity continues -- i mean, look, president trump doesn't own the economy now, let be fair. he inherited the economy from president obama, so this is to some extent a spillover, but i will say this about trump.

his rollback of regulations, they rolled back about 150 regulations already. >> yeah. >> in the executive branch it's having a tremendous confidence tonic among all businesses and especially smaller businesses i think some of that, some of that is being reflected in the numbers, and by the way, one bhor last point, people say the stock market only affects rich people, the top 1% that is not true everyone feels the stock market. >> 50% of your financial savings are in stocks. if you're in 76,000 a year, 6.5% of savings are in stocks it's not just the richest. everyone pen fits from a good stock market. >> have a good weekend. >> my pleasure. >> larry kudlow. coming up, looking for yield the details on an investment nd btethe say isetr an bos. we'll have that. ♪

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welcome back looking for something better than bonds after alan greenspan this morning investors on the hunt for yield have been b buying up the rights to future earnings on songss the value has ballooned with streaming services seeing increases in paid subscriptions. joiping us to discuss why he's a buyer is david goldberg and co president of sony publishing. welcome to you both. it's great to have you with us david, i love this story and i was trying to listen to elmo's song on youtube. is that what you bought the rights to? >> yes, it is.

>> why do you think this is so value bable and what kind of return are you looking for >> over the past few year, i've had a 20% annual return based on the price i paid and based on the asset, how consistent it is. i'm looking for it to stay around that. >> how much did you pay? >> $580,000. >> $580,000. and are you looking mostly to make that up by selling it at a higher price or are you going to get payments from people listening to the song. >> i'm in it to collect payments over the years >> huch do you think you're going to get a year for people listening to the song? >> it's been consistent. over six figures every year. in the six weeks that i've had it, i'm about 20,000, so it's been on track so far >> okay, this is really opening a lot of people's eyes to this possibility. did he hit igt right with elmo's song if you were to pick like a popular black eyes peas song

from five or six years ago that might have had significant inflow back then, it might have dwindled to a trickle today. >> i don't think >> i don't think that's true we're seeing tremendous growth we're hearing yesterday that spotify alone, the mainstreaming service has paid subscriptions over 60 million in their revenue was in the $5 billion range. copyrights are skyrocketing in value because as they say, the ride iing rising tide raises all boats. what's happening with streaming is this is the future. the new distribution model it's making music more u bik wiitous in a sense people can access and helping. >> david, what other songs do you think are the best value plays right now? >> i'm not looking for something that's a big -- >> wait a minute, we're showing

some of your highlights. they include congresses from corn, and keeping up with the kardashians. do you own the rights to that song >> it's just production music has been featured on the show and other similar reality shows. >> david, what are the characteristics for you make for a good long-term music investment and not something that's going fade in a new year's time. >> you want something people are to want to continue to listen to even if something is old, people can still discover it and listen to it easily and conveniently. i like to do the research and just look for it's tough to say trs no exact ingredient. a combination of factors >> i'm going to bid on the rights of evan's last album u. guitar classics. >> not sure you're going to get a will the >> guys, thank you both. it's fascinating earnings parade marches on next week we'll have the key names rht tethisig

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and i had all these points from my chase ink card. so i bought ingredients, utensils, even made custom donut cutters. wow! all with points. that's how i created the ripple: the doughnut in a doughnut in a doughnut. suddenly it's everywhere. i mean, it really took off. what will you create with your points? learn more about the ink business preferred card. next week is another busy one of earnings. i'm looking forward to thursday when we get blue apron and snap. what about you >> come on you're being mean.

>> do you want to laugh at them? >> i just want to see if there's sustainability >> i don't think next week, earnings are going to matter that much. >> disney. priceline? macy's i'm excite d about that one, to. sfwl nobody's pechting anything good >> maybe that's why it could be interesting. we got to do >> fed chatter believe it or not. that's going to matter more. have a great weekend "fast money" starts now. "fast money" starts now. live from the nasdaq market side overlooking times square your traders are -- tonight on fast, the green back having its best day since january rebound iing from its lows of te year and one trader thinks the rally is just getting started he'll ek plain. plus, justice for the pharma bro. he gets slapped with guilty charges on three of eight counts